There is plentiful evidence of the region´s occupation in prehistoric times, in particular the dolmen in the village of Penela da Beira which was used to act as the chancel at the chapel of Nossa Senhora do Monte.

In the twentieth century, Penedono began to develop quite notably when people started to mine its mineral-rich land (gold and wolfram). Nowadays, however, these mines are to be found in a state of total abandon and remain as nothing more than interesting examples of industrial archaeology.